Illinois General Assembly - Full Text of HB1519
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Full Text of HB1519  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 1/31/2023, by Rep. Maurice A. West, II


New Act

    Creates the Consumer Income Share Agreement Act. Provides that no person, partnership, association, limited liability company, or corporation may engage in the business of making income share agreements without a license provided under the Act. Sets forth provisions concerning applications for an income share agreement license, investigations, fees, suspension or revocation of licenses, closing of business, books and records, prohibitions and limitations of income share agreements, required disclosures, statements of account, advertising, penalties, and cease and desist orders. Provides that a person who engages in business as a licensee without the license required by the Act commits a Class 4 felony. Provides that the Department of Financial and Professional Regulation may adopt and enforce reasonable rules, directions, orders, decisions, and findings as the execution and enforcement of the provisions of the Act require and rules in connection with the activities of licensees that are necessary and appropriate for the protection of consumers in the State. Provides that if it appears to the Director that a person or any entity has committed or is about to commit a violation of the Act, a rule adopted under the Act, or an order of the Director, the Director may apply to the circuit court for an order enjoining the person or entity from the violation. Provides that the provisions of the Act are severable. Provides that income share agreements and licensees are subject to the Know Before You Owe Private Education Loan Act, the Student Loan Servicing Rights Act, and the Predatory Loan Prevention Act and shall comply with their requirements and any rules adopted by the Department of Financial and Professional Regulation pursuant to those Acts. Defines terms. Makes other changes. Effective immediately.

LRB103 24976 BMS 51310 b





HB1519LRB103 24976 BMS 51310 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Consumer Income Share Agreement Act.
6    Section 5. Definitions. As used in this Act:
7    "Amount financed" means the amounts advanced by the
8licensee to the consumer or on behalf of the consumer or, if
9the licensee is a merchant financing the sale of goods or
10services to the consumer using an income share agreement, the
11amount credited by the licensee toward the purchase of such
12goods and services on behalf of the consumer.
13    "Annual percentage rate" or "APR" means the percentage
14rate calculated according to the Federal Reserve Board's
15methodology as set forth under Regulation Z, 12 CFR Part 1026.
16The "annual percentage rate" of an income share agreement is
17the measure of the cost of the income share agreement,
18expressed as a yearly rate, that relates to the amount and
19timing of value received by the consumer to the amount and
20timing of payments made. The "annual percentage rate" is
21determined in accordance with either the actuarial method or
22the United States rule method.
23    "Consumer" means a natural person who enters into an



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1income share agreement for personal, family, or household use.
2    "Department" means the Department of Financial and
3Professional Regulation.
4    "Director" means the Director of the Division of Financial
5Institutions of the Department of Financial and Professional
7    "Disposable earnings" means that part of the earnings of
8an individual remaining after the deduction from total
9earnings of amounts required by law to be withheld.
10    "Educational ISA" means an income share agreement that:
11        (1) is not made, insured, or guaranteed under Title IV
12    of the Higher Education Act of 1965, 20 U.S.C. 1070 et
13    seq., or another federally subsidized educational finance
14    program;
15        (2) is extended to a consumer expressly, in whole or
16    in part, for postsecondary educational expenses, tuition,
17    or other obligations of, or pays amounts to, or on behalf
18    of, such individual for costs associated with a
19    postsecondary training program or any other program
20    designed to increase the individual's human capital,
21    employability, or earning potential, and is not limited to
22    programs eligible to participate as programs under Title
23    IV of the Higher Education Act of 1965, 20 U.S.C. 1070 et
24    seq., as well as any personal expenses, such as books,
25    supplies, transportation, and living costs, incurred by
26    the individual while enrolled in such a program and any



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1    other costs or expenses included in the definition of a
2    "qualified higher education expense" as specified in 26
3    U.S.C. 529(e)(3)(A), including refinancing of loans or
4    income share agreements used for the purposes described in
5    this paragraph, and regardless of whether the income share
6    agreement is provided by the educational institution that
7    the consumer attends; and
8        (3) does not include loans, open-end credit, or any
9    loan or income share agreement that is secured by real
10    property or a dwelling.
11    "Federal poverty guidelines" means the poverty guidelines
12updated periodically in the Federal Register by the U.S.
13Department of Health and Human Services under the authority of
1442 U.S.C. 9902(2).
15    "Garnishment" means any legal or equitable procedure
16through which earnings of an individual are required to be
17withheld for payment of the income share agreement.
18    "Income" means the salary, wages, income, tips, capital
19gains, earnings, and other sources of income of a consumer as
20set forth in an income share agreement.
21    "Income share agreement" or "ISA" means an agreement
22between a consumer and an ISA provider under which:
23        (1) the ISA provider credits or advances a sum of
24    money to the consumer or to a third party on the consumer's
25    behalf or, if the ISA provider is a seller of goods or
26    services to the consumer, the ISA provider credits or



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1    advances toward the purchase of such goods or services;
2        (2) the consumer is obligated to make periodic
3    payments, if any become due, to the ISA provider
4    calculated, based upon, or determined by the consumer's
5    income;
6        (3) the consumer only incurs an obligation in each
7    payment period if the individual's income in that period
8    is above an income threshold specified in the ISA
9    agreement;
10        (4) there is an ISA duration after which the
11    obligation is complete regardless of how much has been
12    paid, as long as the consumer has paid any prior amounts
13    due; and
14        (5) each of these elements is available at the time of
15    contracting of the income share agreement.
16For purposes of this definition, an income share agreement
17shall be treated as "credit" (within the meaning of that term
18under 15 U.S.C. 1602(f)) and as a "private education loan"
19(within the meaning of that term under 15 U.S.C. 1650(a)(8))
20to the extent the proceeds of the ISA are used for
21postsecondary educational expenses in a manner consistent with
22the definition of that term.
23    "Income threshold" means a fixed dollar amount that is the
24minimum income per payment period that an ISA recipient is
25required to earn before the ISA recipient is required to make a
26payment on an income share agreement for such payment period.



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1    "Index" means the Consumer Price Index for Urban Wage
2Earners and Clerical Workers: U.S. City Average, All Items,
31967=100, compiled by the Bureau of Labor Statistics, United
4States Department of Labor.
5    "ISA duration" means the maximum time during which a
6consumer could remain obligated on the income share agreement,
7other than periods when an income share agreement provider is
8attempting to collect past-due amounts and absent periods of
9payment relief pauses, forbearance, military service
10suspension, or other suspension of obligations at the request
11of the consumer, regardless of whether the consumer's income
12is greater than the minimum income.
13    "ISA maximum number of payments" means the maximum number
14of ISA payments during ISA payment periods in which the
15consumer's income is equal to or greater than the income
16threshold that a consumer could be required to make. "ISA
17maximum number of payments" does not include periods of
18payment relief pause.
19    "ISA payment" means a calculated monthly payment in excess
20of $0.00 that counts toward the maximum income-based payments
21under the ISA. An "ISA payment" is required only for income
22earned during an ISA payment period in which the consumer's
23income was equal to or greater than the income threshold.
24    "ISA payment calculation method" means the mechanism,
25formula, percentage, dollar figure, or other means of
26calculating a student's payment obligation, based on the



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1student's income, under the terms of the income share
3    "ISA payment cap" means the maximum amount of money a
4consumer must pay to satisfy the terms of an income share
5agreement, which may be expressed as a dollar value, a
6multiple of the amount funded to the student or on the
7student's behalf, or as a maximum effective annual percentage
8rate. "ISA payment cap" does not include charges related to
9default or other charges and fees that are due under the income
10share agreement.
11    "ISA provider" means a person who provides funding to a
12consumer pursuant to an income share agreement or, if the ISA
13provider is a seller of goods and services, the seller.
14    "Licensee" means a person who is licensed under this Act.
15    "Net worth" means total assets minus total liabilities.
16    "Payment relief pause" means a period of time that is
17requested by the consumer during which the consumer is not
18required to make payments despite the consumer's income
19exceeding the income threshold.
20    Section 10. License required to engage in business.
21Without a license provided under this Act, no person,
22partnership, association, limited liability company, or
23corporation may engage in the business of:
24        (1) making income share agreements; or
25        (2) taking assignments of and undertaking direct



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1    collection of payments from or enforcement of rights
2    against consumers arising from income share agreements,
3    except for collection of payments and enforcement of
4    rights for 3 months without a license if the person or
5    entity promptly applies for a license and the application
6    has not been denied.
7    Section 15. Application for income share agreement
8license; fees; surety bond.
9    (a) Application for a license shall be in writing and in a
10form prescribed by the Director. The applicant at the time of
11making an application shall pay the Director the sum of $300 as
12an application fee and the additional sum of $450 as an annual
13license fee for a period terminating on the last day of the
14current calendar year; however, if the application is filed
15after June 30 in any year, the license fee shall be half of the
16annual license fee for the year.
17    (b) Before the license is granted, every applicant shall
18provide in a form satisfactory to the Director that the
19applicant has or will maintain a positive net worth in a
20minimum of $30,000. Every applicant and licensee shall
21maintain a surety bond in the principal sum of $25,000 issued
22by a bonding company authorized to do business in this State
23and that shall be approved by the Director. The bond shall run
24to the Director and shall be for the benefit of any consumer
25who incurs damages as a result of a violation of this Act or



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1rules adopted pursuant to this Act by a licensee. If the
2Director at any time finds that a bond is of insufficient size,
3is insecure, is exhausted, or is otherwise doubtful, an
4additional bond in such amount as determined by the Director
5shall be filed by the licensee within 30 days after written
6demand therefor by the Director.
7    Section 20. Appointment of attorney-in-fact for service of
8process. Every licensee shall appoint, in writing, the
9Director and his or her successors in office or any official
10who shall be charged with the administration of this Act, as
11attorney-in-fact upon whom all lawful process against the
12licensee may be served within the same legal force and
13validity as if served on the licensee. A copy of such written
14appointment, duly certified, shall be filed in the office of
15the Director, and a copy thereof certified by him or her shall
16be sufficient evidence. This appointment shall remain in
17effect while any liability remains outstanding in this State
18against the licensee. When summons is served upon the Director
19as attorney-in-fact for such licensee, the Director shall
20immediately notify the licensee by registered mail, enclosing
21the summons and specifying the hour and day of service.
22    Section 25. Investigation; license issuance.
23    (a) Upon the filing of an application and the payment of
24the fees, the Director shall investigate to determine:



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1        (1) that the reputation of the applicant, including
2    the managers of a limited liability company, and the
3    partners, owners, officers, or directors thereof warrants
4    belief that the business will be operated honestly and
5    fairly within the purposes of this Act; and
6        (2) that the applicant meets the positive net worth
7    requirements of this Act.
8    Unless the Director makes findings enumerated in this
9subsection, he or she shall not issue a license and shall
10notify the applicant of the denial and return to the applicant
11the sum paid by the applicant as a license fee, but shall
12retain the $300 application fee. The Director shall approve or
13deny every application for license within 60 days after the
14filing of an application with payment of a fee.
15    (b) Upon written request, the applicant is entitled to a
16hearing on the question of his or her qualifications for a
17license if:
18        (1) the Director notifies the applicant in writing
19    that his or her application has been denied; or
20        (2) the Director does not issue a license within 60
21    days after the application for the license was filed.
22    A request for a hearing may not be made more than 15 days
23after the Director mails a writing to the applicant notifying
24him or her that the application has been denied and stating in
25substance the Director's findings supporting denial.



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1    Section 30. License. The license shall state the address,
2including the city and state, at which the business is to be
3conducted and shall state fully the name of the licensee. The
4license shall be conspicuously posted in the place of business
5of the licensee and shall not be transferable or assignable.
6    Section 35. License; place of business.
7    (a) Not more than one place of business shall be
8maintained under the same license, but the Director may issue
9more than one license to the same licensee upon compliance
10with all the provisions of this Act governing the original
11issuance of a license. A website operated by the licensee
12shall constitute a location.
13    (b) Whenever a licensee changes his or her place of
14business to a location other than that set forth in the
15license, he or she shall give written notice to the Director at
16least 10 days before the relocation. However, if the new
17location is in excess of 15 miles from the previous location,
18the licensee shall obtain written approval from the Director
19before relocation.
20    Section 40. Annual license fee; expenses.
21    (a) Before December 1 of each year, a licensee shall pay to
22the Director, and the Department must receive, the annual
23license fee required by this Act for the next succeeding
24calendar year. The license shall expire on January 1 of the



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1following year unless the licensee fee has been paid before
3    (b) In addition to the license fee, the reasonable expense
4of any examination, investigation, or custody by the Director
5under any provisions of this Act shall be borne by the
7    (c) If a licensee fails to renew his or her license by
8December 31, it shall automatically expire and the licensee is
9not entitled to a hearing; however, the Director, in his or her
10discretion, may reinstate an expired license upon payment of
11the annual renewal fee and proof of good cause for failure to
13    Section 45. Suspension or revocation of license.
14    (a) The Director may issue to a licensee an order to show
15cause why his or her license should not be suspended for a
16period not in excess of 6 months or be revoked. The order shall
17set a place for a hearing and a time therefor that is no less
18than 10 days after the date of the order. After the hearing,
19the Director shall revoke or suspend the license, or, if there
20are mitigating circumstances, may accept an assurance of
21discontinuance and allow retention of the license, if the
22Director finds that:
23        (1) the licensee has repeatedly and intentionally
24    violated this Act or any rule or order lawfully made
25    pursuant to this Act, or has violated an assurance of



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1    discontinuance; or
2        (2) facts or conditions exist that clearly would have
3    justified the Director in refusing to grant a license for
4    that place or those places of business were the facts or
5    conditions known to exist at the time the application for
6    the license was made.
7    (b) A revocation or suspension of a license is not lawful
8unless the Director, before instituting proceedings, gives
9notice to the licensee of the facts or conduct that warrant the
10intended action and the licensee is afforded an opportunity to
11show compliance with all lawful requirements for retention of
12the license.
13    (c) If the Director finds that probable cause for
14revocation of a license exists and that enforcement of this
15Act requires immediate suspension of the license pending
16investigation, the Director, after a hearing upon 10 days'
17written notice, may enter an order suspending the license for
18not more than 30 days.
19    (d) Whenever the Director revokes or suspends a license,
20he or she shall enter an order to that effect and forthwith
21notify the licensee of the revocation or suspension. Within 10
22days after entry of the order he or she shall deliver to the
23licensee a copy of the order and the findings supporting the
25    (e) A person holding a license to make income share
26agreements may relinquish the license by notifying the



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1Director in writing of its relinquishment, but the
2relinquishment does not affect his or her liability for acts
3previously committed.
4    (f) Revocation, suspension, or relinquishment of a license
5does not impair or affect the obligation of any preexisting
6lawful contract between the licensee and any consumer.
7    (g) The Director may reinstate a license, terminate a
8suspension, or grant a new license to a person whose license
9has been revoked or suspended if no fact or condition then
10exists that clearly would have justified the Director in
11refusing to grant a license.
12    Section 50. Closing of business; surrender of license.
13    (a) At least 10 days before a licensee ceases operations,
14closes business, or files for bankruptcy, the licensee shall
15do the following:
16        (1) Notify the Department of its action in writing.
17        (2) With the exception of filing for bankruptcy,
18    surrender its license to the Director for cancellation;
19    the surrender of the license shall not affect the
20    licensee's civil or criminal liability for acts committed
21    before surrender or entitle the licensee to return any
22    part of the annual license fee.
23        (3) Notify the Director of the location where the
24    books, accounts, contracts, and records will be maintained
25    and the procedure to ensure prompt return of contracts,



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1    titles, and releases to the customers.
2        (4) Ensure that the accounts, books, records, and
3    contracts shall be maintained and serviced by the licensee
4    or another licensee under this Act or an entity exempt
5    from licensure under this Act.
6    (b) The Department shall have the authority to conduct
7examinations of the books, records, and loan documents at any
8time after surrender of the license, filing of bankruptcy, or
9the cessation of operations.
10    Section 55. Examinations and investigations of conduct of
12    (a) The Director shall examine periodically, at intervals
13he or she deems appropriate but not less than once per year,
14income share agreements, business, and records of every
15licensee. In addition, for the purpose of discovering
16violations of this Act or securing information lawfully
17required, the Director at any time may investigate the income
18share agreements, business, and records of any licensee. For
19these purposes the Director shall have free and reasonable
20access to the offices, places of business, and records of the
22    (b) If the licensee's records are located outside this
23State, the licensee at the Director's request shall make them
24available to the Director at a convenient location within this
25State, or pay the reasonable and necessary expenses for the



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1Director or his or her representative to examine them where
2they are located. The Director may designate representatives,
3including comparable officials of the state in which the
4records are located, to inspect them on the Director's behalf.
5    (c) For purposes of this Section, the Director may
6administer oaths or affirmations, and upon request of a party
7or his or her own motion may subpoena witnesses, compel their
8attendance, adduce evidence, and require the production of any
9matter that is relevant to the investigation, including the
10existence, description, nature, custody, condition, and
11location of any books, documents, or other tangible things and
12the identity and location of persons having knowledge of
13relevant facts or any other matter reasonably calculated to
14lead to the discovery of admissible evidence.
15    (d) Upon failure without lawful excuse to obey a subpoena
16or to give testimony and upon reasonable notice to all persons
17affected thereby, the Director may apply to the court for an
18order compelling compliance.
19    Section 60. Books and records.
20    (a) Every licensee shall maintain records in conformity
21with generally accepted accounting principles and practices in
22a manner that will enable the Director to determine whether
23the licensee is complying with this Act. The recordkeeping
24system of a licensee is sufficient if it makes the required
25information reasonably available. The records pertaining to



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1any income share agreement need not be preserved for more than
22 years after making the final entry relating to the income
3share agreement.
4    (b) On or before April 15 of each year, every licensee
5shall file with the Director a composite annual report in a
6form prescribed by the Director relating to all income share
7agreements made by the licensee. Information contained in
8annual reports shall be confidential and may be published only
9in composite form.
10    Section 65. No other business allowed.
11    (a) A licensee may not carry on other business for the
12purpose of evasion or violation of this Act at a location where
13the licensee makes income share agreements.
14    (b) Upon application by the licensee, the Director may
15approve the conduct of other businesses not specifically
16permitted by this Act in the licensee's place of business,
17unless the Director finds that such conduct will conceal or
18facilitate evasion or violation of this Act. The Director's
19approval shall be in writing and shall describe the other
20businesses which may be conducted in the licensed office.
21    Section 70. Prohibitions.
22    (a) No licensee shall take any power of attorney in
23connection with an income share agreement.
24    (b) A consumer may not authorize any person to confess



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1judgment on a claim arising out of an income share agreement.
2An authorization in violation of this Section is void.
3    Section 75. Pledge or sale of income share agreement.
4    (a) No licensee or other person shall pledge, hypothecate,
5or sell an income share agreement entered into under this Act
6by a consumer except to another licensee under this Act, a
7bank, savings bank, savings and loan association, or credit
8union created under the laws of this State or the United
9States, or to other persons or entities authorized by the
10Director in writing. Sales of such notes by licensees under
11this Act or other persons shall be made by agreement in writing
12and shall authorize the Director to examine the income share
13agreement documents so hypothecated, pledged, or sold.
14    (b) A consumer may pay the original ISA provider until he
15or she receives notification of assignment of rights to
16payment pursuant to an income share agreement and that payment
17is to be made to the assignee. A notification that does not
18reasonably identify the rights assigned is ineffective. If
19requested by the consumer, the assignee shall seasonably
20furnish reasonable proof that the assignment has been made and
21unless the proof is furnished the consumer may pay the
22original ISA provider.
23    (c) An assignee of the rights of the ISA provider is
24subject to all claims and defenses of the consumer against the
25ISA provider arising from the income share agreement. A claim



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1or defense of a consumer may be asserted against the assignee
2under this Section only if the consumer has made a good faith
3attempt to obtain satisfaction from the ISA provider with
4respect to the claim or defense and then only to the extent of
5the amount owing to the assignee with respect to the ISA
6provider or defense that arose at the time the assignee has
7notice of the claim or defense. Notice of the claim or defense
8may be given before the good faith attempt specified in this
9subsection. Oral notice is effective unless the assignee
10requests written confirmation when or promptly after oral
11notice is given and the consumer fails to give the assignee
12written confirmation within the period of time, not less than
1314 days, stated to the consumer when written confirmation is
14requested. An agreement may not limit or waive the claims or
15defenses of a consumer under this Section.
16    Section 80. Monthly payment affordability.
17    (a) Maximum ISA income obligation. Each income share
18agreement shall specify the ISA payment calculation method
19applicable to the income share agreement and shall comply with
20the following:
21        (1) An ISA provider shall not enter into an ISA with a
22    consumer if the consumer would be committing more than a
23    total of 20% of the consumer's future income toward the
24    payment of the ISA.
25        (2) An income share agreement provider may not enter



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1    into an educational ISA with a consumer if the consumer
2    would be committing more than 20% of his or her income,
3    inclusive of the obligations that the consumer will incur
4    through other educational ISA and education loans the
5    consumer holds at the time. The ISA provider must confirm
6    a consumer's educational ISA and education loan
7    liabilities through a verifiable third-party source. At a
8    minimum, the licensee must confirm such liabilities using
9    information maintained by a nationwide consumer reporting
10    agency, as defined by 15 U.S.C. 1681a(f), and doing so is
11    sufficient for meeting the requirement in this paragraph;
12    however, nothing in this paragraph shall prohibit a
13    licensee from using other sources to provide additional
14    verification. For the purposes of calculating the portion
15    of a student's future income that would be consumed by the
16    educational ISA for which the student has applied and
17    other educational ISAs and education loans known at the
18    time, the ISA provider shall calculate the aggregate
19    future burden of all such obligations, including the
20    educational ISA for which the student is applying, at
21    hypothetical future income levels ranging from the income
22    threshold of the ISA for which the student has applied up
23    to $70,000, with such number adjusting for inflation each
24    year, in increments of $10,000. The terms of the
25    educational ISA for which the student has applied cannot
26    cause the student's aggregate future burden to exceed the



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1    limit in subsection (b) at any of the income increments
2    stated in this paragraph. For the purpose of calculating
3    the percentage burden of an educational ISA at a given
4    future income level, the ISA provider shall use the ISA
5    payment amount that would be applicable for the ISA at
6    such income level. For the purpose of calculating the
7    percentage burden of an educational loan at a given future
8    income level, the ISA provider shall divide the annual
9    payment obligation by income level using the most
10    affordable payment plan or option which would yield the
11    lowest monthly payments that would be available to the
12    student at such income level under such loan. For students
13    enrolled in a Title IV program, as part of this analysis
14    the ISA provider shall assume a federal loan balance equal
15    to the larger of (1) the student's existing federal loan
16    balance, and (2) the maximum amount the student is
17    eligible to borrow under Federal Direct Stafford Loans for
18    his or her status, dependent or independent.
19    (b) Protections during periods of low earnings. The income
20share agreement must state that when a consumer has income
21that is equal to or below the income threshold set forth in the
22income share agreement that the consumer's payment obligation
23is zero dollars. The income threshold at the time of
24origination must be high enough such that the consumer's gross
25income minus any income share agreement obligation must leave
26the consumer with gross income equal to at least 200% of the



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1federal poverty guidelines for a single person.
2    (c) Required payment relief pauses. An income share
3agreement must offer at least 3 months of voluntary payment
4relief pauses, so long as a consumer's current income at the
5time of requesting the payment relief pause is equal to or less
6than 400% of the federal poverty guidelines for a single
7individual, for every 30 income-determined payments required
8under the income share agreement.
9    Section 85. Maximum effective annual percentage rate. An
10income share agreement must specify that the maximum amount
11that a consumer could be required to pay based on the
12consumer's income under the income share agreement will not
13result in a consumer ever being required to pay an effective
14annual percentage rate that is greater than 36%. If at any time
15the consumer makes and the provider accepts a payment of an
16amount that would cause the limit in this Section to apply, the
17provider shall refund any amounts, within 20 calendar days,
18necessary to ensure that the consumer's payments do not result
19in an effective annual percentage rate that is greater than
20the limit specified in this Section.
21    Section 90. Limits on duration of income share agreements.
22    (a) The ISA maximum number of payments shall not exceed
23240 monthly payments.
24    (b) The ISA duration shall not exceed 360 months,



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1excluding any months in which a consumer has requested and
2received a payment relief pause.
3    Section 95. Risk sharing.
4    (a) A licensee may not contract for income share agreement
5terms that would result in a consumer having income that is
6less than or equal to 300% of the federal poverty guidelines
7for a single person for the ISA duration being required to make
8a stream of ISA payments that would yield an effective APR
9greater than 8%, or the high yield of the 10-year United States
10Constant Maturity Treasury Notes auctioned at the final
11auction held before the current calendar year in which an ISA
12offering is made plus 7%, whichever is greater.
13    (b) A licensee may not contract for income share agreement
14terms that would result in a consumer having income that is
15less than or equal to 400% of the federal poverty guidelines
16for a single person for the ISA duration being required to make
17a stream of ISA payments that would yield an effective APR
18greater than 12%, or the high yield of the 10-year United
19States Constant Maturity Treasury Notes auctioned at the final
20auction held before the current calendar year in which an ISA
21offering is made plus 11%, whichever is greater.
22    (c) A licensee may not contract for income share agreement
23terms that would result in a consumer having income that is
24less than or equal to 500% of the federal poverty guidelines
25for a single person for the ISA duration being required to make



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1a stream of ISA payments that would yield an effective APR
2greater than 15%, or the high yield of the 10-year United
3States Constant Maturity Treasury Notes auctioned at the final
4auction held before the current calendar year in which an ISA
5offering is made plus 14%, whichever is greater.
6    (d) A licensee may not contract for income share agreement
7terms that would result in a consumer having income that is
8less than or equal to 600% of the federal poverty guidelines
9for a single person for the ISA duration being required to make
10a stream of ISA payments that would yield an effective APR
11greater than 18%, or the high yield of the 10-year United
12States Constant Maturity Treasury Notes auctioned at the final
13auction held before the current calendar year in which an ISA
14offering is made plus 17%, whichever is greater.
15    (e) For the purposes of determining the various tiers set
16forth in this Section, a licensee shall calculate the
17effective APR by determining the various federal poverty
18guidelines tiers at the time the consumer's income share
19agreement is originated and assuming such amounts are fixed
20through the ISA duration.
21    (f) For the purposes of determining ISA duration in this
22Section: in the case of an educational ISA, a licensee shall
23assume the ISA duration started after a period equal to the
24expected length of the program for which a consumer is
25enrolling; or in the case of a non-educational ISA, a licensee
26shall assume the ISA duration started immediately.



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1    Section 100. Limits on covered income. An income share
2agreement must specify the definition of income to be used for
3the purposes of calculating a consumer's payment obligation
4under the income share agreement. No income share agreement
5shall include any of the following in its definition of
7        (1) The income of the consumer's children or
8    dependents.
9        (2) Any amount paid by the consumer under Title II or
10    XVI of the Social Security Act, 42 U.S.C. 401 et seq., 42
11    U.S.C. 1381 et seq.; or under a State program funded by
12    Title IV of the Social Security Act, 42 U.S.C. 601 et seq.
13        (3) Individual retirement account distributions.
14        (4) Pensions and annuities.
15        (5) Social security benefits.
16        (6) Other sources of federal or State aid provided to
17    individuals through any of the following:
18            (A) unemployment programs;
19            (B) disaster relief programs;
20            (C) Medicare or Medicaid benefits;
21            (D) benefits received through the Supplemental
22        Nutrition Assistance Program;
23            (E) economic impact payments; or
24            (F) other income excluded from the definition of
25        taxable income set forth by the Internal Revenue



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1        Service.
2    Section 105. Fees permitted. In addition to the ISA
3obligation permitted by this Act, a licensee may contract for
4and receive the following additional charges:
5        (1) Official fees and taxes.
6        (2) A fee, which shall not exceed the sum of $25, for
7    failure to provide documentation to the licensee for the
8    confirmation and reconciliation of the consumer's income.
9        (3) A fee for processing any forms to confirm the
10    consumer's income with the United States Internal Revenue
11    Service or a State department of revenue or taxation on a
12    dollar-for-dollar, pass-through basis of the expenses
13    incurred by the licensee.
14        (4) A late payment fee in an amount of $20 or 5% of the
15    late payment, whichever is greater, for any payment that
16    is more than 15 days past due; no late payment fee may be
17    charged more than once per late payment.
18        (5) An amount not exceeding $25, plus any actual
19    expenses incurred in connection with a check or draft that
20    is not honored because of insufficient or uncollected
21    funds or because no such account exists.
22        (6) Charges for other benefits conferred on the
23    consumer, if the benefits are of value to her or him and
24    the charges are reasonable in relation to the benefits,
25    are of a type that is not for credit, and are authorized as



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1    permissible additional charges by rule adopted by the
2    Department.
3        (7) Before or after default in payment of a scheduled
4    payment of an income share agreement, the parties to the
5    income share agreement may agree in writing to a deferral
6    of all or part of one or more unpaid payments and the
7    licensee may make, at the time of deferral and receive at
8    that time or at any time thereafter, a deferral charge not
9    exceeding an amount equal to 10% of the missed payment.
10    Section 110. Restriction on security interest. Under no
11circumstances shall a licensee take a security interest in any
12collateral in connection with an income share agreement.
13    Section 115. Discharge of obligations.
14    (a) All further obligations under an income share
15agreement, except those accruing before the date of
16determination by a relevant governmental agency, shall
17terminate if the consumer is deemed totally and permanently
18disabled by the applicable governmental agency.
19    (b) All further obligations under the income share
20agreement, except those accruing before the consumer's death,
21shall terminate upon the death of the consumer.
22    Section 120. Prohibition on co-signers. No income share
23agreement shall include or permit the use of a co-signer in



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1connection with any obligation related to an income share
3    Section 125. Limitation on acceleration.
4    (a) Licensees may not attempt to accelerate or otherwise
5liquidate a future payment stream under an income share
7    (b) Notwithstanding subsection (a), nothing in this
8Section shall prevent a licensee from collecting or pursuing
9any other remedy available to the licensee for the collection
10of amounts that were due from the consumer under an income
11share agreement that were not paid or properly remitted to the
12licensee. Nothing in this Section shall prevent a licensee
13from calculating a projected future income for a consumer and
14calculating a consumer's payment obligation using that
15projection if the consumer does not provide contractually
16obligated documentation of income.
17    (c) Notwithstanding subsection (a), an income share
18agreement may contain a provision that allows a consumer to
19terminate his or her income share agreement before the events
20terminating further obligations under the income share
21agreement. The early termination mechanisms, such as total
22caps on payments due to the licensee or other rights to
23partially or fully terminate further obligations under the
24income share agreement, must be optional to the consumer and
25within the consumer's control. In such circumstances, such



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1mechanisms will not be deemed a form of acceleration, early
2termination penalty, or prepayment penalty.
3    Section 130. No assignment of wages.
4    (a) A licensee may not take an assignment of earnings of
5the consumer for payment or as security for payment of a debt
6arising out of an income share agreement. An assignment of
7earnings in violation of this Section is unenforceable by the
8assignee of the earnings and revocable by the consumer. This
9Section does not prohibit a consumer from authorizing
10deductions from his or her earnings in favor of a licensee if
11the authorization is revocable, the consumer is given a
12complete copy of the writing evidencing the authorization at
13the time the consumer signs it, and the writing contains on its
14face a conspicuous notice of the consumer's right to revoke
15the authorization.
16    (b) A sale of unpaid earnings made in consideration of the
17payment of money to or for the account of the seller of the
18earnings is deemed to be a loan to the seller secured by an
19assignment of earnings.
20    Section 135. Limitations on garnishment.
21    (a) Before entry of judgment in an action against a
22consumer for a payment arising from an income share agreement,
23a licensee may not attach unpaid earnings of the consumer by
24garnishment or like proceedings.



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1    (b) The maximum part of the aggregate disposable earnings
2of an individual for any workweek which is subjected to
3garnishment to enforce payment of a judgment arising from an
4income share agreement may not exceed the lesser of:
5        (1) 25% of the individual's disposable earnings for
6    that week; or
7        (2) the amount by which the individual's disposable
8    earnings for that week exceed 40 times the federal minimum
9    hourly wage prescribed by Section 6(a)(1) of the Fair
10    Labor Standards Act of 1938, 29 U.S.C. 206(a)(1), in
11    effect at the time the earnings are payable.
12    In case of earnings for a pay period other than a week, the
13Department shall prescribe by rule a multiple of the federal
14minimum hourly wage equivalent to the amount set forth in
15paragraph (2).
16    (c) No court may make, execute, or enforce an order or
17process in violation of this Section.
18    (d) At any time after entry of a judgment in favor of a
19licensee in an action against a consumer for a payment arising
20from an income share agreement, the consumer may file with the
21court a verified application for an order exempting from
22garnishment pursuant to that judgment, for an appropriate
23period of time, a greater portion or all of the consumer's
24aggregate disposable earnings for a workweek or other
25applicable pay period than is provided for in subsection (b).
26The consumer shall in the application designate the portion of



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1earnings not exempt from garnishment under this Section and
2other law, designate the period of time for which the
3additional exemption is sought, describe the judgment with
4respect to which the application is made, and state that the
5designated portion as well as his or her earnings that are
6exempt by law are necessary for the maintenance of the
7consumer or a family supported wholly or partly by the
8earnings. Upon filing a sufficient application under this
9subsection, the court may issue any temporary order necessary
10under the circumstances to stay enforcement of the judgment by
11garnishment, shall set a hearing on the application not less
12than 5 nor more than 10 days after the date of filing of the
13application, and shall cause notice of the application and the
14hearing date to be served on the judgment creditor or the
15creditor's attorney of record. At the hearing, if it appears
16to the court that all or any portion of the earnings sought to
17be additionally exempt are necessary for the maintenance of
18the consumer or a family supported wholly or partly by the
19earnings of the consumer for all or any part of the time
20requested in the application, the court shall issue an order
21granting the application to that extent; otherwise it shall
22deny the application. The order is subject to modification or
23vacation upon further application of any party to it upon a
24showing of changed circumstances after a hearing upon notice
25to all interested parties.
26    (e) An employer may not discharge an employee because a



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1licensee has subjected or attempted to subject unpaid earnings
2of the employee to garnishment or like proceedings directed to
3the employer for the purpose of paying a judgment arising from
4an income share agreement.
5    Section 140. Use of multiple agreements. A licensee may
6not use multiple agreements with respect to a single income
7share agreement with intent to violate any limitations of this
9    Section 145. Required disclosures.
10    (a) A licensee shall disclose the following information to
11each consumer, clearly and conspicuously, in a form that the
12consumer can keep at the time the transaction is consummated:
13        (1) The date of the contract.
14        (2) The dollar amount of the amount financed.
15        (3) The ISA payment calculation method. Any
16    percentages used in the ISA payment calculation method
17    shall be rounded to the nearest one-hundredth of 1% if the
18    percentage is not a whole number.
19        (4) The maximum number of payments expressed as a
20    whole number.
21        (5) The maximum duration expressed as a whole number
22    of the period of time.
23        (6) The income threshold expressed as a dollar amount
24    and a statement that payments will only be required during



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1    periods when the consumer's income is equal to or exceeds
2    the income threshold.
3        (7) An itemization of the amount financed; if the ISA
4    provider is a seller of goods or services, then the amount
5    of any down payment and any additional fees or costs shall
6    be itemized.
7        (8) The definition of income to be used for the
8    purposes of calculating the consumer's obligations under
9    the income share agreement.
10        (9) A description of the terms under which the
11    obligations of the consumer under the income share
12    agreement will be extinguished before the full ISA
13    duration.
14        (10) A payment schedule that shows the date on which
15    the first payment will be due and reflecting each date
16    thereafter during the ISA duration that a payment may be
17    due.
18        (11) An itemization of any permissible fees associated
19    with the ISA.
20        (12) A description of the methods used by the ISA
21    provider to engage in a process of reconciliation and
22    verification to determine if the consumer's payments are
23    more than, equal to, or less than the payments owed by the
24    consumer under his or her income share agreement; this
25    description shall include the following:
26                (i) a description of the frequency or triggers



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1            for the commencement of the income verification
2            process;
3                (ii) a description of the requirements and
4            timing of the process in which the consumer must
5            participate in order for the ISA provider to
6            verify the consumer's income; and
7                (iii) a description of any records or forms,
8            including tax records, that the consumer may be
9            required to execute or submit.
10        (13) The name and address of the ISA provider.
11        (14) A table displaying the dollar amounts of each
12    payment, the number of payments, the effective annual
13    percentage rate, and the total of all payments that a
14    consumer would be required to pay under the income share
15    agreement at a range of annual income levels based on the
16    ISA duration. The comparison table shall include a
17    statement that "This Comparison Table is for illustrative
18    purposes only and may not reflect the amounts that you are
19    likely to pay under this income share agreement. This
20    table assumes you have the same income over the entire
21    term of your income share agreement. It does not take into
22    account changes in income. Your income will likely change
23    over time. This table does not represent the income or
24    range of incomes that you are likely to earn in the
25    future.". In computing the APR, the ISA provider shall use
26    the amount financed and may assume that the income share



HB1519- 34 -LRB103 24976 BMS 51310 b

1    agreement will be disbursed in the amount and with the
2    disbursement schedule that it reasonably expects to follow
3    for such income share agreement and that payments would
4    commence on the date set forth in the income share
5    agreement. The income used in this disclosure shall
6    include, at minimum, the obligations at the following
7    incomes:
8                (i) no income;
9                (ii) income equal to the annual equivalent of
10            the income threshold;
11                (iii) various income scenarios with at least
12            calculations at annual incomes of $40,000,
13            $60,000, $80,000, $100,000, $125,000, $150,000,
14            $175,000, and $200,000; and
15                (iv) if known by the ISA provider, the
16            consumer's current income.
17        (15) A statement that the income share agreement is
18    not a fixed payment installment loan and that the amount
19    the consumer will be required to pay under the income
20    share agreement:
21                (i) may be more or less than the amount
22            financed by the ISA provider; and
23                (ii) will vary in proportion with the
24            consumer's income.
25    (b) The disclosures required by this Section shall be
26grouped together and segregated from all other information.



HB1519- 35 -LRB103 24976 BMS 51310 b

1    (c) The disclosures required by this Section may be
2provided to a consumer in electronic form, subject to
3compliance with the consumer's consent and other applicable
4provisions of the Electronic Signatures in Global and National
5Commerce Act, 15 U.S.C. 7001 et seq., and applicable State
7    (d) If model documents are established pursuant to any
8federal law covering income share agreements, compliance with
9those forms shall be considered compliance with this Act with
10respect to the disclosure requirements contained in this Act.
11    Section 150. Early completion. An income share agreement
12shall specify the terms and conditions by which the consumer
13may extinguish his or her obligations under the income share
14agreement before the end of the income share agreement's
15duration. An income share agreement may include any method to
16determine the early completion payment; however, a consumer
17may always cancel an income share agreement by making
18aggregate payments, excluding payments to fees, equal to the
19ISA payment cap. The consumer is entitled to this early
20completion regardless of whether the consumer makes this early
21completion payment by making regularly scheduled payments or
22by making a single lump sum payment in the amount of the early
23completion payment.
24    Section 155. Assumption of increase in future income.



HB1519- 36 -LRB103 24976 BMS 51310 b

1    (a) If a consumer fails to provide income documentation as
2reasonably required by an income share agreement, a licensee
3may assign an amount of income to the consumer and compute the
4consumer's monthly payment amount by any of the following
5methods, to the extent disclosed in the income share
7        (1) assigning an income amount obtained from a
8    reasonably reliable third party or a credit reporting
9    agency;
10        (2) if the consumer previously provided income
11    documentation or has had an income assigned in the prior
12    12-month period that has increased by an amount not to
13    exceed 10%, but such increase may not be applied more than
14    once per 12-month period;
15        (3) contacting the consumer's employer, or any person
16    or entity reasonably believed to represent the consumer's
17    employer, to obtain, verify, or update the consumer's
18    income information;
19        (4) contacting the Department of Revenue or the
20    Internal Revenue Service to obtain the most recent
21    information available about the student's income; or
22        (5) for licensees providing educational income share
23    agreements, assigning a reasonable qualified income based
24    on the incomes of:
25            (A) the nearest reasonably relevant quantile of
26        income for individuals working in the profession for



HB1519- 37 -LRB103 24976 BMS 51310 b

1        which the consumer's educational program was intended
2        to prepare the participant, as determined by
3        information published by the Bureau of Labor
4        Statistics or other reasonably reliable publicly
5        available data sources; or
6            (B) the nearest reasonably relevant quantile of
7        income of consumers who attended the same or a
8        reasonably comparable covered educational program or
9        course of study, as determined by information
10        published by the Bureau of Labor Statistics or other
11        reasonably reliable publicly available data sources.
12    (b) If a licensee assigns an income to a consumer's income
13share agreement, then it shall notify the consumer in the
14monthly billing statement, and in each billing statement
15thereafter while the assigned income remains applicable to the
16consumer's income share agreement, that income has been
17assigned and of the consumer's rights under this Section.
18    (c) If the consumer does provide income information as
19reasonably required by the income share agreement within one
20year of the date on which the licensee notified the consumer
21that assigned income will be applied to the income share
22agreement, then, within 15 days after the licensee's receipt
23of such information, the licensee shall update each prior
24instance in which assigned income was applied using the income
25information provided by the consumer; if the consumer provides
26income information more than one year after the licensee first



HB1519- 38 -LRB103 24976 BMS 51310 b

1assigned income to the consumer's income share agreement, then
2the licensee may, but is not obligated to, update each prior
3instance in which assigned income was applied using the income
4information provided by the consumer.
5    (d) A licensee that assigns income to an income share
6agreement shall retain all applicable records relating to the
7method and data sources used to make such estimation for 3
8years after the end of that income share agreement.
9    Section 160. Receipts; statements of account; evidence of
11    (a) The licensee shall deliver or mail to the consumer,
12without request, a written receipt for each payment made
13pursuant to an income share agreement. A periodic statement
14showing a payment received by mail complies with this
16    (b) Upon written request of a consumer, the licensee shall
17provide a written statement of the dates and amounts of
18payments made within the 12 months preceding the month in
19which the request is received. The statement shall be provided
20without charge once during each year of the term of the
21obligation. If additional statements are requested, the
22licensee may charge an amount not to exceed $5.00 for each
23additional statement.
24    (c) After a consumer has fulfilled all obligations with
25respect to an income share agreement, the licensee, upon



HB1519- 39 -LRB103 24976 BMS 51310 b

1request of the consumer, shall deliver or mail to the consumer
2written evidence acknowledging termination of all obligations
3with respect to the income share agreement.
4    Section 165. Advertising. A licensee may not advertise,
5print, display, publish, distribute, broadcast, or cause to be
6advertised, printed, displayed, published, distributed, or
7broadcast in any manner any statement or representation that
8is false, deceptive, or misleading.
9    Section 170. Penalties.
10    (a) A person who engages in business as a licensee without
11the license required by this Act commits a Class 4 felony.
12    (b) The consumer, before the expiration of 2 years after
13the date of his or her last scheduled payment, may recover such
14reasonable attorney's fees and court costs as a court may
15assess. A bona fide error by a licensee in calculating
16charges, fees, or rebates is not a violation if the licensee
17corrects the error within a reasonable time after discovery.
18    (c) No provision of this Section imposing any liability
19shall apply to any act done or omitted in conformity with any
20rule or written interpretation of a rule by the Division of
21Financial Institutions of the Department of Financial and
22Professional Regulation, notwithstanding that after such act
23or omission has occurred, such rule or interpretation is
24amended, rescinded, or determined by judicial or other



HB1519- 40 -LRB103 24976 BMS 51310 b

1authority to be invalid for any reason. All interpretations
2must be written and signed by the Department's chief counsel
3and approved by the Director.
4    (d) Notwithstanding any other provision of this Section,
5if any person who does not have a license issued under this Act
6makes an income share agreement to an Illinois consumer, then
7the loan shall be null and void and the person who made the
8income share agreement shall have no right to collect,
9receive, or retain any amounts related to the income share
11    Section 175. Cease and desist.
12    (a) The Director may issue a cease and desist order to any
13licensee or another person doing business without a required
14license, when in the opinion of the Director, the licensee or
15the other person is violating or is about to violate any
16provision of this Act or any rule or requirement imposed in
17writing by the Department as a condition of granting any
18authorization permitted by this Act.
19    (b) The Director may issue a cease and desist order before
20a hearing.
21    (c) The Director shall serve notice of his or her action,
22designated as a cease and desist order made pursuant to this
23Section, including a statement of the reasons for the action,
24either personally or by certified mail, return receipt
25requested. Service by certified mail shall be deemed completed



HB1519- 41 -LRB103 24976 BMS 51310 b

1when the notice is deposited into the U.S. mail.
2    (d) Within 15 days after service of the cease and desist
3order, the licensee or the other person may request, in
4writing, a hearing.
5    (e) The Director shall schedule a hearing within 30 days
6after the request for a hearing unless otherwise agreed to by
7the parties.
8    (f) The cost for the administrative hearing shall be set
9by rule.
10    (g) If it is determined that the Director had the
11authority to issue the cease and desist order, he or she may
12issue such orders as may be reasonably necessary to correct,
13eliminate, or remedy such conduct.
14    (h) The powers vested in the Director by this Section are
15additional to all other powers and remedies vested in the
16Director by law, and nothing in this Section shall be
17construed as requiring that the Director employ the power
18conferred in this Section instead of or as a condition
19precedent to the exercise of any other power or remedy vested
20in the Director.
21    (i) The Department shall have the authority to adopt rules
22for the administration of this Section.
23    Section 180. Civil action. A claim of violation of this
24Act may be asserted in a civil action.



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1    Section 185. Application of Act.
2    (a) This Act does not apply to any person, partnership,
3association, limited liability company, or corporation doing
4business under and as permitted by any law of this State or the
5United States relating to banks, savings and loan
6associations, savings banks, or credit unions. This Act does
7not apply to any income share agreements or the like made with
8business or commercial entities.
9    (b) During the first 90 days after the effective date of
10this Act, any person who has applied for a license under this
11Act or filed written notice of intention to apply for a license
12with the Director and whose application has not been denied,
13shall be subject to all provisions of this Act and may make
14income share agreements as if he or she were a licensee under
15this Act.
16    (c) This Act shall not apply to any contractor transaction
17made before the effective date of this Act.
18    Section 190. Rules. The Department may adopt and enforce
19such reasonable rules, directions, orders, decisions, and
20findings as the execution and enforcement of the provisions of
21this Act require and that are not inconsistent with this Act.
22In addition, the Department may adopt rules in connection with
23the activities of licensees that are necessary and appropriate
24for the protection of consumers in this State. All rules and
25directions of a general character shall be sent electronically



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1to all licensees.
2    Section 195. Judicial review. All final administrative
3decisions of the Department under this Act shall be subject to
4judicial review pursuant to the provisions of the
5Administrative Review Law and any rules adopted pursuant to
6the Administrative Review Law.
7    Section 200. Injunction; civil penalties; costs. If it
8appears to the Director that a person or any entity has
9committed or is about to commit a violation of this Act, a rule
10adopted under this Act, or an order of the Director, the
11Director may apply to the circuit court for an order enjoining
12the person or entity from violating or continuing to violate
13this Act, the rule, or order and for injunctive or other relief
14that the nature of the case may require and may, in addition,
15request the court to assess a civil penalty up to $1,000 along
16with costs and attorney's fees.
17    Section 205. Adjustment of dollar amounts.
18    (a) From time to time the dollar amounts in this Act
19designated as subject to change shall change, as provided in
20this Section, according to and to the extent of changes in the
22    (b) The index for December of the year preceding the year
23in which this Act becomes effective is the reference base



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2    (c) The designated dollar amounts shall change on July 1
3of each even-numbered year if the percentage of change,
4calculated to the nearest whole percentage point, between the
5index and the end of the preceding year and the reference base
6index is 10% or more, but:
7        (1) the portion of the percentage change in the index
8    in excess of a multiple of 10% shall be disregarded and the
9    dollar amounts shall change only in multiples of 10% of
10    the amounts provided in this Act on the date of enactment;
11    and
12        (2) the dollar amounts shall not change if the amounts
13    required by this Section are those currently in effect
14    pursuant to this Act as a result of earlier application of
15    this Section.
16    (d) If the index is revised, the percentage of change
17pursuant to this Section shall be calculated on the basis of
18the revised index. If a revision of the index changes the
19reference base index, a revised reference base index shall be
20determined by multiplying the reference base index then
21applicable by the rebasing factor furnished by the Bureau of
22Labor Statistics. If the index is superseded, the index
23referred to in this Section is the one represented by the
24Bureau of Labor Statistics as reflecting most accurately
25changes in the purchasing power of the dollar for consumers.
26    (e) The Department shall adopt a rule setting forth, on or



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1before April 30 of each year in which dollar amounts are to
2change, the changes in dollar amounts required by this
3Section. As soon as practical after the changes occur, the
4Department shall adopt a rule setting forth the changes in the
5index required by subsection (d), including, if applicable,
6the numerical equivalent of the reference base index under a
7revised reference base index and the designation or title of
8any index superseding the index.
9    (f) A person does not violate this Act with respect to a
10transaction otherwise complying with this Act if he or she
11relies on dollar amounts either determined according to
12subsection (c) or appearing in the last rule of the Department
13announcing the then-current dollar amounts.
14    Section 210. Construction against implicit authority. This
15Act is a general act intended as a unified coverage of its
16subject matter; no part of this Act shall be construed to be
17impliedly repealed by subsequent legislation if that
18construction can reasonably be avoided.
19    Section 215. Application of other Acts.
20    (a) Income share agreements and licensees are subject to
21the Know Before You Owe Private Education Loan Act, the
22Student Loan Servicing Rights Act, and the Predatory Loan
23Prevention Act and shall comply with their requirements and
24any rules adopted by the Department of Financial and



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1Professional Regulation pursuant to those Acts.
2    (b) For the purpose of the certified database requirement
3under Section 17.5 of the Consumer Installment Loan Act, an
4ISA provider shall be required to report to such database if
5the provider is extending ISAs to consumers where a consumer
6could pay an effective APR that is greater than or equal to the
7interest rate that would require an installment lender to be
8licensed under the Consumer Installment Loan Act. The
9Department of Financial and Professional Regulation shall
10adopt rules to update the certified database to provide fields
11specific to ISAs using the key terms of an ISA as defined in
12this Act.
13    Section 220. Severability. The provisions of this Act are
14severable under Section 1.31 of the Statute on Statutes.
15    Section 999. Effective date. This Act takes effect upon
16becoming law.